Applying for a Gaming License in Malta

Why TuneMalta?

In April 2004 the Malta Lotteries & Gaming Authority announced the new Remote Gaming Regulations had entered into force. Through this system¸ the Maltese government ensured that the regulations would offer protection to the players¸ limit excessive bureaucracy and red-tape and hence enhance Malta’s reputation as a reputable financial services jurisdiction.

TuneMalta is at the forefront in the offer of professional services to both major and small operators including start-ups. Using our extensive web of contacts we can assist you to interact with other operators to increase your market potential. Our in-depth expertise in all aspects of gaming¸ is based on a fundamental understanding of the industry and on the specific needs of our clients.

We are primed to provide advice that goes beyond simply conventional licensing requirements and pride ourselves in providing a one-stop-shop offering the following professional services in relation to Remote Gaming Lincenses:

Application of Gaming License in Malta

Brokerage of Licenses

Company Formation

Office Space Allocation

Call Centre Services

Opening of Bank Accounts

Payroll & Accounting

Commissioning of Financial Audit Services

Commissioning of Co-Location and 24/7 hosting service

VAT & Tax Advice

IT Testing & Payment Gateway Services

Why Malta?

Malta was one of the first EU member states to regulate Remote Gaming through the “Remote Gaming Regulations’ (2004) and ‘Draft Amendments’. These regulations promote responsible gaming to operators and at the same time safeguard players. The Lotteries and Gaming Authority is an independent regulatory body responsible for the following forms of gaming in Malta (online and land based):

Amusement Machines

Casino Gaming

Commercial Bingo Games

Commercial Communication games

Gaming Devices

Remote Gaming

Sports Betting

the National lottery and other lotteries

Non-Profit Games

A typical Maltese Gaming Corporate Structure would consist of shareholders of the Malta Holding Company ideally being non-residents¸ but not necessarily.

The Malta Holding Company would own Malta operating companies who would offer online gaming services. Finally the Back Office Services Company would provide services to other operating companies within the group (mainly for VAT purposes). Application forms required to apply for any of the above mentioned licenses can be provided upon request.

Most importantly is that as from June 2011, the application process has been harmonised into a singular stage and all applicants can submit all the required information at one go.

Malta has an excellent economic track record of sustained economic growth and political stability, and highly skilled and qualified multi-lingual professionals with high quality educational facilities. It offers high standards of health and operation that are much cheaper than most neighboring European countries.

In Malta, ICT is considered to be a pivotal activity. In fact in these last years there were major developments in e-commerce, m-Commerce and e-Government and the Maltese Government has invested heavily in the technology infrastructure and has built an e-Government framework rated by European Commission as the number one of all member states.

Competitive advantages for Malta in the ICT maintenance sector include:

Availability of specific skills in ICT where Malta is the regional training centre for Cisco, IBM, Microsoft and Oracle

Adaptation for Innovation is quick

Attractive cost structures and low social security costs for employers

Freedom of movement of labour and capital within the EU

It also enjoys a high standard of living and a financial services sector fully backed by paramount anti-money laundering standards. The Maltese regulator is the Malta Financial Services Authority (MFSA) that acts as a single licensing and supervisory authority for all financial services activity.

Most importantly Malta Offers a number of tax incentives and these include:

Wide Double Taxation Treaty Network

Effective Corporate Tax after refunds of 5%

0% withholding tax on outbound dividend payments

Domestic relief from double taxation

Participation exemption or full refund of tax

Dividends repatriated to EU Member States are not subject to tax due to Parent Subsidiary Directive

Exemption of stamp duty

Administrative and Licence Fees

(as per second schedule of the Remote Gaming Regulations [S.L. 438.01] issued under the Lotteries and Other Games Act, Cap.438 of the Laws of Malta)

Fee

EUR

Details

Application Fee for new License

2,330

paid upon application for a remote gaming licence

Licence Fee

8,500

per annum per licence

Approval Fee for Transfer or Assignment of Licence

1,500

paid upon application for approval

Approval of Share Transfer

1,500

paid upon application for approval

Approval of Simple Contractual Commercial Agreements

70

per annum per contract. Aggregate amount for approved contracts shall not exceed EUR30,000 per annum

Approval of Complex Joint Venture Agreements

Administrative hourly fee which is predetermined and communicated prior to the commencement of approval process

Systems Review

2,330

Fee paid in advance for the execution by the Authority’s approved third party certifiers / reviewers

Tax Schedule

(as per Fourth Schedule of the Remote Gaming Regulations (S.L. 438.04) issued under the Lotteries and Other Games Act (Cap. 438 of the Laws of Malta).

Class 4 licensee hosting and managing an operator which is not in possession of the relevant Class 1, 2 or 3 licence in terms of the regulrations, however hosting an EEA licensed Business to Consumer operator

1,165

per month per operator, paid by the Class 4 Licensee

Remote Gaming Tax Capping per licensee per remote gaming licence

466,000

per annum

Prevention of Money Laundering and Funding of Terrorism

Malta has implemented all EU Directives regulating the prevention of money laundering. Malta is part of MONEYVAL (the Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures (formerly PC-R-EV), established in September 1997 by the Committee of Ministers of the Council of Europe to conduct self-and mutual-assessment exercises of the anti-money laundering measures implemented in the Council of Europe countries.

Malta is not listed in any international blacklist of countries and it actively participates in initiatives adopted at international levels such as by the EU Committee on the Prevention of Money Laundering and Terrorist Financing, the MONEYVAL Committee of the Council of Europe, the Financial Action Task force against money laundering and the OECD.

Futhermore money laundering as a criminal activity and the prevention thereof are two statutory insturments under Maltes Law, namely the Prevention of Money Laundering Act, 1994 and the Prevention of Money Laundering and Funding of Terrorism Regulations, 2008. Moreover subject persons are also required to comply with detailed Implementing Procedures on the Prevention of Money Laundering and Funding of Terrorism published by the Financial Intelligence Analysis Unit (FIAU).

Should you wish us to provide you with Malta Gaming License Application, please contact us for further details. All the services can be tailored to meet your requirements. Our team can be contacted by email at info@pkfmalta.com.